stake

Definition

A wooden stick driven into the ground to mark territory or prop things up, or in the business world, the percentage ownership or financial commitment you have in a deal. High stakes mean high risk and high reward; low stakes mean you're testing the waters.

Example Usage

Early investors had a 15% stake in the startup before the Series A.

Source: Common industry terminology

Related Terms

Beginner

Stealth Mode

When a startup operates in secrecy to avoid competitors copying their idea, which assumes competitors would care about the idea in the first place. It's the startup equivalent of whispering at a party where nobody is listening.

🚀 Startup / VC

Advanced

qualifying transaction

A financing or exit event that triggers specific contractual provisions in a term sheet, such as conversion of convertible notes or acceleration of vesting. The legal trip-wire that determines when various startup agreements activate.

🚀 Startup / VC

Beginner

friends and family round

The first fundraising round from people who love you enough to give you money despite zero evidence your idea will work. The most expensive way to ruin Thanksgiving dinner conversations.

🚀 Startup / VC

Advanced

Antidilution Clause

A provision that adjusts an investor's ownership if future funding rounds happen at lower valuations. Basically a rich person's insurance policy.

🚀 Startup / VC

Beginner

1099 Contractor

An independent contractor hired on a project basis rather than as a full-time employee. Startups use them to avoid benefits/taxes, contractors love them for flexibility.

🚀 Startup / VC

Advanced

Preference Shares

Special shares that get priority in liquidation, dividends, or control—essentially investor insurance against founder incompetence.

🚀 Startup / VC

Translate This Term

See “stake” in Corporate Speak, Gen-Z Slang, Pirate Speak, and more.

Try the Translator

Share This Term

Post on X Share on Facebook Share on LinkedIn

Discover a Term

Beginner

bodega

A term used ironically or affectionately to describe any small corner store or convenience shop, regardless of actual Ne...